Court suit proceeds may go to shareholders

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Nickel miner Minara Resources has flagged a possible capital return to shareholders after US engineering giant Fluor Daniel agreed to pay $155 million to settle all claims for design flaws and breakdowns that initially crippled the big Murrin Murrin mine near Leonora.

Ending a five-year legal battle, which cost the mine owners $40 million in legal fees, Minara yesterday said it would receive $93 million from Fluor Australia within 30 days. The remainder would go its partner in the mine, Glencore International.

The deal also ends all other outstanding legal actions between the warring parties and cannot be appealed against. News of the agreement sent Minara shares soaring 5 per cent yesterday, as the stock added 12¢ to $2.52.

The settlement is the second win in two years for Minara and Glencore, which were awarded $147 million from the first phase of their claim against Fluor. That fell to $39.8 million after the abitrators recognised Fluor's counter-claims seeking the return of security bonds.

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Yesterday's award was for just over half the $300 million Minara and Glencore had claimed for problems at Murrin Murrin. The mine was originally expected to cost $1 billion, but the partners have now spent more than $1.6 billion.

Minara chief executive Peter Johnston said the board would consider all its options after the end-of-year results. Those options might include a special dividend for investors, he said.